Yes Bank hits new low

Yes Bank is the top loser on the BSE, currently down almost 13% at Rs.304.05 and this is after hitting a new 52-week low at Rs.288.55.

The stock hit a low on two counts – firstly the market was not too happy with the bank hiking its base rate by 25 bps as it feels this was a move made to avert fall in credit growth. Rate has been hiked more to balance the costs , which was on account of higher cost of short term deposits. Axis Bank too has followed the footsteps of Yes and gone ahead and hiked its deposit rates for some tenures by 50-400 bps.

Secondly, yesterday, Deputy Governor in-Charge of Banking Supervision Anand Sinha during the customary post-policy interaction at the RBI headquarters, said that it is seized of the ongoing boardroom battle at private lender Yes Bank and may make necessary changes in the required norms on appointment of directors on bank boards if needed.